Bailout requests grow as Greek minister Vassilis Rapanos resigns

Eurozone leaders were reeling from a triple blow as Greece’s prospective finance minister resigned, while Spain and Cyprus asked for bailouts to prop up their struggling banks.

Vassilis Rapanos has resigned (Picture: EPA)

Vassilis Rapanos, chairman of the National Bank of Greece, stepped down after he was taken to hospital with severe abdominal pain, dizziness and nausea last Friday.

He was named as finance minister last week in the country’s new three-party coalition government but fell ill before he could take office. Mr Rapanos sent a formal letter of resignation that was accepted by prime minister Antonis Samaras.

The letter came as Mr Samaras was released from hospital after surgery to repair a detached retina that will keep him away from an EU summit in Brussels on Thursday.

Greece will send a delegation with outgoing finance minister Giorgos Zanias, one of the key negotiators in Greece’s bailout agreement.

But Germany’s foreign minister Guido Westerwelle warned: ‘We cannot allow everything to be negotiated again.’ Meanwhile, Spain formally requested a loan of ‘up to a maximum of €100billion (£80.3billion)’ for its banks.

It has yet to specify how much of the loan package offered by the other 16 eurozone countries it needs. Economy minister Luis De Guindos said the final figure would be known on July 9 when Spain and its partners reach agreement on terms such as interest.

Spain wants the money to go straight to the banks, rather than the government be responsible for repayment.

But, while the International Monetary Fund is in support, Germany and the European Commission oppose the move.

Cyprus became the fifth eurozone country to request financial aid – after Greece, Ireland, Portugal and Spain – owing to its ‘large exposure in the Greek economy’.

It needs to find about £1.45billion, or ten per cent of its gross domestic product, to recapitalise its second-largest lender, Cyprus Popular Bank, by Saturday. Fitch became the third agency to downgrade Cyprus’ credit rating to junk status, estimating its banks need £3.21billion.